New Jersey Lawyers BlogNew Jersey Consumer Fraud Act Does Not Apply to Architects, Appeals Court Says’
Under New Jersey construction law, the New Jersey Consumer Fraud Act applies to most residential and commercial construction projects. It is applicable to contractors, subcontractors and suppliers. However, a New Jersey Appeals Court held in a recent decision that architects are not subject to the Consumer Fraud Act because of the “learned professional” exemption.
Background
The Borough of Caldwell contracted with Cozzarelli Cirminiello Architects, LLC for architectural services including design, construction and rehabilitation of Borough-owned facilities. CCA’s invoices were approved by municipal officials before being submitted to and approved by the Council before they were paid. After a new Council was elected, the Borough terminated its contracts with CCA. Caldwell then sued CCA in the Law Division of the Superior Court of New Jersey in Essex County for breach of contract, unjust enrichment and violation of the New Jersey Consumer Fraud Act. Caldwell claimed that CCA failed to perform its services, failed to produce “products,” failed to support the Borough on construction bids, failed to produce construction documents, double billed the Borough, and billed it above the agreed upon rate.
Our transactional attorneys handle many types of commercial and real estate transactions, from closings on homes, office buildings, factories, to commercial transactions including the sale of all or part of a business. The overwhelming majority of these transactions require the purchaser to take out a loan to finance the purchase. Whether a buyer qualifies for the loan is one of the main contingencies in the transactions.